LATEST BROKER VIEWS

Date Broker New target Recomm.
15 Aug Barclays... 510.00 Overweight

From across the road ....

LONDON (Alliance News) - Moody's Investors Service on Tuesday said it has placed its rating on Standard Life Aberdeen PLC under review for a potential upgrade

The ratings agency has placed the company's Baa1 long term issuer rating and Baa2 subordinate rating under review. Standard Life Aberdeen was formed on Monday after the merger between Standard Life and Aberdeen Asset Management completed - creating Europe's second-largest fund manager.

Standard Life's existing shareholders now own two-thirds of the combined entity, with Aberdeen shareholders holding the other third.

Concurrently, the rating agency affirmed the A1 Insurance Financial Strength Rating of Standard Life Assurance Ltd, with the outlook remaining stable. Moody's also affirmed the SLAL-backed subordinate and junior subordinate debt ratings issued by Standard Life Aberdeen.

"The review for upgrade reflects our view that the merger between Standard Life and Aberdeen will accelerate Standard Life's transformation into an investment company with a more diversified product offering, larger customer base and wider geographic reach. The combined entity benefits from enhanced scale, with pro-forma annual revenues of approximately GBP2.8 billion, a more diverse revenue mix, potential for cross-selling opportunities and expense reductions," said Moody's.

The ratings agency said the pro-forma leverage for the new group is expected to remain moderate, with debt around 1.4 times than annual earnings before interest, tax, depreciation and amortisation, given the all-share nature of the transaction.

Cash generation is also forecast to remain strong by the ratings agency at around GBP865 million per year, based on Standard Life's underlying cash generation of GBP502 million in the 12 months to the end of 2016, and Aberdeen's core operating cash flow of GBP363 million for year to the end of September.

"By creating a larger and more diversified asset manager, the merger better positions the group to face current industry pressures where passive competition and increased regulatory oversight are pressuring fees down. Nevertheless the merger is not a solution for the current net outflows on the emerging markets funds for Aberdeen and the flagship GARS funds for Standard Life," said Moody's.

However, Moody's did note that a transaction of this size carries execution risks, particularly around customer and key personnel retention, systems and platforms integration as well as brand management.

"During our review we plan to get more clarity on the key objectives of the newly formed group in particular in light of the current industry pressures and net outflows from certain funds, as well as monitor the integration of the two businesses both from a client/key personnel and operational/cost perspective," said Moody's.

"However, Aberdeen has a solid history of business acquisition and integration and Standard Life has displayed a good track record of cost discipline which together alleviate execution risks and we expect the company to deliver on its target of GBP200 million of pre-tax run-rate cost synergies per year within three years," Moody's added.

Standard Life Aberdeen shares were up 0.5% at 430.0 pence on Wednesday.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

Bought in this morning on the back of the merger, broker upgrades, TPs etc., and the div also!

LATEST BROKER VIEWS

Date Broker New target Recomm.
25 Aug Citigroup 490.00 Buy
15 Aug Barclays... 510.00 Overweight

No idea why the above was posted GRRRRRR!

LATEST BROKER VIEWS

Date Broker New target Recomm.
21 Sep JP Morgan... 540.00 Overweight
12 Sep Goldman Sachs 500.00 Buy
11 Sep RBC Capital... 520.00 Outperform
25 Aug Citigroup 490.00 Buy
15 Aug Barclays... 510.00 Overweight

LATEST BROKER VIEWS

Date Broker New target Recomm.
16 Oct Jefferies... 512.00 Buy
7 Sep Credit Suisse 460.00 Outperform
4 Sep Peel Hunt 435.00 Add
31 Aug Barclays... 490.00 Overweight
25 Aug Numis 349.00 Reduce
24 Aug Peel Hunt 425.00 Add
24 Aug Numis 330.00 Reduce
24 Aug Shore Capital N/A Buy
24 Aug Liberum Capital 495.00 Buy
1 Aug Shore Capital N/A Buy

Whats with your blank charts further back in the thread CC?

Senior moments Stan, posting longer term charts :0)

Don't tell him Pike!

Nice tick up today. In profit now......

2 decent buys from directors today